Investment giant BlackRock’s Ethereum-based BUIDL fund has raised $245 million in Ethereum tokens since launching last week. According to data from Etherscan, 10 transactions were entered into the BlackRock USD Institutional Digital Liquidity Fund, starting with $5 million on March 20, when the BUIDL fund was launched.
Over the next seven days, an additional $239.8 million flowed into ERC-20-based funds, including $92 million in short-duration U.S. government bonds from tokenized real-asset platform Ordo Finance.
“We are thrilled to see BlackRock embracing securities tokenization with the launch of BUIDL,” Ordo Finance said in a blog post Wednesday. “This is especially true of our extensive collaboration with ecosystem participants.” “This not only further validates our original concept of a tokenized U.S. Treasury fund, but also supports our argument that the tokenization of traditional securities on a public blockchain represents the next major step in the evolution of financial markets.”
BlackRock says that although it is not a stablecoin like USDT or USDC, BUIDL’s value is intended to remain 1:1 to the U.S. dollar. Here 1 BUIDL is equal to 1 dollar. Cryptocurrency stablecoins aim to provide stability to the often volatile cryptocurrency markets and provide a path for exchanging fiat currencies or other tokens.
BlackRock said the fund invests 100% of its assets in cash, U.S. Treasury securities and repurchase agreements.
BlackRock filed documents with the U.S. Securities and Exchange Commission on March 14 for the British Virgin Islands-based BlackRock USD Institutional Digital Liquidity Fund. News of the filing renewed hopes that a spot Ethereum ETF could be launched soon, despite the SEC’s pushback against BlackRock’s iShares. Ethereum Trust ETF.
Last week, the SEC delayed its decision on Grayscale’s Ethereum ETF until the end of May.
BlackRock’s BUIDL ranked second behind Franklin Templeton’s Franklin OnChain US Government Money Fund with a market capitalization of $360.2 million, according to data from the Real-World Assets (RWA) platform. The market capitalization of the Ethereum-based BlackRock BUIDL fund is $106.5 million.
speaking CNBC Last January, BlackRock CEO Larry Fink made the case for a cryptocurrency-based exchange-traded fund after the SEC approved the first Bitcoin ETF.
“I see the value in owning an Ethereum ETF,” Fink said at the time. “As I said, this is just a stepping stone towards tokenization.”
Although interest in Ethereum spot ETFs is strong, these investment vehicles are unlikely to attract as much attention as Bitcoin, which currently attracted $4.5 billion on its first day.
Edited by Ryan Ozawa.